Attached files
| file | filename |
|---|---|
| 8-K - Wendy's Co | a8-11x11earningsrelease8k.htm |
| EX-99.1 - PRESS RELEASE - Wendy's Co | ex991pressrelease.htm |
EXHIBIT 99.2
Calculation of EBITDA and Reconciliation of EBITDA to Net (Loss) Income | |||||||||||||||||||||||||||||
2010 | 2011 | ||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | First Quarter | Second Quarter | |||||||||||||||||||||||
EBITDA | $ | 70,093 | $ | 90,810 | $ | 73,850 | $ | 68,864 | $ | 303,617 | $ | 66,228 | $ | 77,641 | |||||||||||||||
Depreciation and amortization | (32,432 | ) | (31,381 | ) | (32,639 | ) | (30,394 | ) | (126,846 | ) | (30,314 | ) | (29,842 | ) | |||||||||||||||
Impairment of long-lived assets | — | (482 | ) | (20,921 | ) | (4,923 | ) | (26,326 | ) | (7,897 | ) | (365 | ) | ||||||||||||||||
Operating profit | 37,661 | 58,947 | 20,290 | 33,547 | 150,445 | 28,017 | 47,434 | ||||||||||||||||||||||
Interest expense | (31,065 | ) | (29,516 | ) | (29,159 | ) | (28,645 | ) | (118,385 | ) | (29,442 | ) | (28,089 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (26,197 | ) | — | — | (26,197 | ) | — | — | ||||||||||||||||||||
Investment income, net | 129 | 5,048 | 77 | 5 | 5,259 | 37 | 148 | ||||||||||||||||||||||
Other income, net | 1,068 | 885 | 163 | 318 | 2,434 | 216 | 189 | ||||||||||||||||||||||
Income (loss) before income taxes | 7,793 | 9,167 | (8,629 | ) | 5,225 | 13,556 | (1,172 | ) | 19,682 | ||||||||||||||||||||
(Provision for) benefit from income taxes | (482 | ) | (3,725 | ) | 7,872 | 890 | 4,555 | 876 | (8,308 | ) | |||||||||||||||||||
Income (loss) from continuing operations | 7,311 | 5,442 | (757 | ) | 6,115 | 18,111 | (296 | ) | 11,374 | ||||||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||||||||
(Loss) income from discontinued operations, net of income taxes | (10,711 | ) | 5,300 | (152 | ) | (16,873 | ) | (22,436 | ) | (1,113 | ) | 3,672 | |||||||||||||||||
Loss on disposal, net of income tax benefit | — | — | — | — | — | — | (3,780 | ) | |||||||||||||||||||||
Net (loss) income from discontinued operations | (10,711 | ) | 5,300 | (152 | ) | (16,873 | ) | (22,436 | ) | (1,113 | ) | (108 | ) | ||||||||||||||||
Net (loss) income | $ | (3,400 | ) | $ | 10,742 | $ | (909 | ) | $ | (10,758 | ) | $ | (4,325 | ) | $ | (1,409 | ) | $ | 11,266 | ||||||||||
Reconciliation of EBITDA to Adjusted EBITDA | |||||||||||||||||||||||||||||
2010 | 2011 | ||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | First Quarter | Second Quarter | |||||||||||||||||||||||
EBITDA | $ | 70,093 | $ | 90,810 | $ | 73,850 | $ | 68,864 | $ | 303,617 | $ | 66,228 | $ | 77,641 | |||||||||||||||
Plus: | |||||||||||||||||||||||||||||
Arby’s indirect corporate overhead in general and administrative (G&A) | 9,646 | 7,702 | 7,323 | 7,898 | 32,569 | 7,888 | 6,735 | ||||||||||||||||||||||
SSG purchasing cooperative expenses in G&A | 4,900 | — | — | 245 | 5,145 | (2,275 | ) | — | |||||||||||||||||||||
Integration costs in G&A | 2,894 | 856 | 579 | 1,185 | 5,514 | — | — | ||||||||||||||||||||||
Reversal of pension withdrawal expense in cost of sales | — | — | — | (4,975 | ) | (4,975 | ) | — | — | ||||||||||||||||||||
Retention program and other transaction related costs | — | — | — | — | — | 1,884 | 5,039 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 87,533 | $ | 99,368 | $ | 81,752 | $ | 73,217 | $ | 341,870 | $ | 73,725 | $ | 89,415 | |||||||||||||||
Reconciliation of G&A to Adjusted G&A Expense | |||||||||||||||||||||||||||||
2010 | 2011 | ||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year | First Quarter | Second Quarter | |||||||||||||||||||||||
G&A, as reported, adjusted for discontinued operations presentation | $ | 82,340 | $ | 74,081 | $ | 73,984 | $ | 81,106 | $ | 311,511 | $ | 74,685 | $ | 74,456 | |||||||||||||||
Less: | |||||||||||||||||||||||||||||
Arby’s indirect corporate overhead | (9,646 | ) | (7,702 | ) | (7,323 | ) | (7,898 | ) | (32,569 | ) | (7,888 | ) | (6,735 | ) | |||||||||||||||
SSG purchasing cooperative expenses | (4,900 | ) | — | — | (245 | ) | (5,145 | ) | 2,275 | — | |||||||||||||||||||
Integration costs | (2,894 | ) | (856 | ) | (579 | ) | (1,185 | ) | (5,514 | ) | — | — | |||||||||||||||||
Adjusted G&A | $ | 64,900 | $ | 65,523 | $ | 66,082 | $ | 71,778 | $ | 268,283 | $ | 69,072 | $ | 67,721 | |||||||||||||||
Disclosure Regarding Non-GAAP Financial Measures
EBITDA is used by the Company as a performance measure for benchmarking against the Company’s peers and competitors. The Company believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the restaurant industry. The Company also uses adjusted EBITDA which excludes certain special or non-recurring expenses, net of certain special or non-recurring benefits, detailed in the reconciliation tables set forth above, and adjusted general and administrative, which excludes Arby’s indirect corporate overhead, and purchasing cooperative and integration costs, as internal measures of business operating performance. The Company believes such financial measures provide a meaningful perspective of the underlying operating performance of the Company’s current business. EBITDA, adjusted EBITDA and adjusted general and administrative are not recognized terms under U.S. Generally Accepted Accounting Principles (“GAAP”). Because all companies do not calculate EBITDA, similarly titled financial measures or adjusted general and administrative in the same way, those measures as used by other companies may not be consistent with the way the Company calculates such measures and should not be considered as alternative measures of operating profit or net loss, or general and administrative.
The Company’s presentation of EBITDA, adjusted EBITDA and adjusted general and administrative is not intended to replace the presentation of the Company’s financial results in accordance with GAAP.